Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-21-2007, 12:29 PM
Junior Member
 
Join Date: Jan 2007
Posts: 11
Deductibility of rental improvements property?

Can you please explain what improvements are immediately deductible and kind of improvements have to be capitalized and depreciated?

Thanks.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-21-2007, 09:29 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
Dear Dwhite,

The IRS states that expenditures for improvements that are truly repairs and do not result in major structural changes to the rental property can be expensed on Schedule E, immediately in the year incurred.

Examples include painting, new carpets, fixing the screen doors, new windows, broken doors etc are treated as repairs.

Whereas, the expenses that result in major structural changes such as a new roof, basement finish, major improvements to the deck, a new pool etc have to be capitalized and depreciated over 39.5 years!

Remember Dishwasher replacements. Washer/Dryer are treated as capital expenditures are also capitalized!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.